Two financial newspapers out of Taiwan, Commercial Times and Economic Daily News, reported on 29 May that Quanta Computer Inc. has been awarded a contract to manufacture the second generation iPhone. According to the report Quanta will manufacture 5 million handsets beginning in September 2007.

The reports added that "the second-generation device" will reportedly offer "a different outer design to fit different markets."

Although the company would not confirm the rumors citing confidentiality agreements with their clients, Quanta is the largest contract manufacturer of notebook PCs in the world. A conflicting report in DigiTimes states that Quanta has not yet won the G2 iPhone but is currently bidding on the contract.

Quanta responded with the following statement:

It is important for the Company to gain new business to sustain growth and development. However, the Company would like to reiterate that as general business conduct, the Company will not comment on specific customer,order or any types of confidential information. All business remains solid and strong as planned.

Quanta has manufactured several of Apple's notebook computers including many of their PowerBooks. iBooks were manufactured by Asustek. Intel-based MacBook and MacBook Pros are manufactured by Quanta and Asustek. The PowerBook 17-inch was originally manufactured by Compal Electronics but that was also taken over by Quanta when negotiations with Apple broke down.

The first generation iPhone, which is slated to begin shipping next month, is being manufactured by iPod maker Foxconn (a.k.a. Hon Hai Precision Industry Co.)